Practice
Check your answer
Write your response and explain your reasoning.
Prepare a two-date location bridge for cash in three balance-sheet captions. One $5 million transfer moves cash between included accounts; a later $2 million external payment leaves the restricted account. Show the evidence and statement treatment of each movement.
Compare your reasoning with the worked answer
The transfer from unrestricted to included restricted cash has zero population and section effect. The external payment from the restricted account reduces the population and follows its supplied underlying activity classification.